Company Overview September 9. 2019
ILS Overview § Services 4.8 million member lives across 30+ customers § ILS is a technology-enabled management services § In 2019, ILS expects to generate $306mm of revenue and company that optimizes the cost and quality of care for $21mm of normalized adjusted EBITDA Company high-cost, complex patient populations that are eligible Fast Facts for Medicare, Medicaid or dual-eligible coverage, which § Florida Community Care revenues expected to exceed $1.0 billion annually by 2022 is, in aggregate, a $500+ billion market § The Company has two operating segments: Managed Care Initiatives ― Core: Offers managed care organizations turn-key Florida Community Care Health Pointe (New York) managed long-term care management, nutritional support, comprehensive care management and third- party administrative services with a focus on social determinants of health ― Managed Care: Leveraging the capabilities in its core gk business, which enabled numerous third-party plans to operate successfully, ILS has established two managed care subsidiaries: § Florida Community Care (“FCC”): Operates as a MLTC plan under a statewide contract with the State of Florida that commenced in December 2018 § Health Pointe (“HP”): An Institutional Special Needs Plan (“I-SNP”) in New York that will commence enrollment in April 2019 Clinical Technology and Reporting Platform § ILS’ platform is differentiated by its technology-enabled approach, patient-centered philosophy and its ability to incorporate social determinants of health eCare eClaims iRAD Integrated Member Integrated Reporting and Comprehensive Managed Management/Case Care Claims Processing Analysis Dashboard 2 Management System System
Company History and Timeline ILS has developed a full-suite of capabilities to manage complex Medicare and Medicaid populations, with a focus on populations needing LTSS and coordination around social determinants § 2018: Achieved NCQA Accreditation as early adopter (LTC) § 2008: Began to actively develop § 2018: Florida Community Care (93% the proprietary eCare IT platform owned by ILS), an ILS subsidiary, is § 2001: Founders began to assist § 2009: Developed Care Transition awarded an MLTC contract with the health plans and other Services model State of Florida to manage Expanding Value Proposition & Market organizations in the delivery § 2010: Introduced Comprehensive populations in need of long-term care and management of long-term Care Management for Medicare ― FCC went live in December 2018 care services and Medicaid populations § 2019: ILS introduces a Medicare I-SNP § 2003: Implemented MSO § 2010: Began to expand nationally in New York that will commence in Pediatric Program in Florida Opportunity § 2012 – 2014: ILS successfully October 2019 under the Health Pointe § 2004: Implemented nursing started LTC programs in FL, NY, CA, brand home diversion program in VA, IL and SC Florida § 2013: Acquired Royal Healthcare/TPA business line § 2005: Launched Nutritional Support Services division to § 2017: ILS qualifies as a long-term provide targeted nutrition care PSN through a Community benefits to health plan clients Care for the Elderly contract with in Florida the Area Agency on Aging Founding and Growth in Significant Proprietary Product Continued Expansion Through Programs Development and Expansion Partnerships and Organic Growth 2001-2005 2006 - 2017 2018 Onwards 3
Large and Growing Market Opportunity Complex populations account for over $500 billion of healthcare spending which has caused the federal and state governments to increase support for managed care tools, such as those offered by ILS Spending on Select Complex Government Populations Policy Tailwinds Non-Dual Aged, Blind and § Federal government evaluating Dual-Eligible Spending MLTSS Spending 1 Disabled Spending LTSS benefit that would cover all eligible individuals, regardless of (% of Total Medicare (% of Total Medicaid Spend) (% of Total Medicaid Spend) And Medicaid Spend) whether they qualify for Medicaid ABD Dual MLTSS 21% Eligibles 29% § CMS guidance for 2019 allows 33% (and encourages) inclusion of nutrition benefits in Medicare All All All Advantage plans Others Others Others 71% 79% 67% § More states transitioning the management of complex $421 billion $124 billion $171 billion populations to managed care § Dual-eligibles represent approximately 9% of total Medicare and Medicaid beneficiaries but 33% of Medicare and Medicaid spend § Similarly, non dual-ABDs represent only 7% of Medicaid beneficiaries but 21% of Medicaid spend § MLTC spending typically represents the highest activity for dual-eligibles and non-dual ABDs Source: Kaiser Family Foundation, CMS, CBO, Medicaid.gov, Wall Street research 1. Current Medicaid spend for LTC based on growth in CBO’s projected federal January 2019 Baseline Medicaid payments for long-term care 4
ILS Core Services Portfolio ILS has 5 legacy core services lines, which collectively serve 4.8 million members across 30+ clients Date of % of 2019 Description Inception Core Rev. Turn-key solution for managed care plans that addresses all clinical and administrative Managed Long-Term 2001 needs associated with optimizing the cost and quality of care for Medicaid beneficiaries 2001 39% Care (LTC) needing long-term care Meals and Nutrition One of the nation’s largest nutritional providers delivering consistent, high-quality 2005 30% 2005 (NSS) therapeutic meals to elderly and at-risk populations A fully integrated business and technology offering to support all administrative and Third Party Admin (TPA) 2010 2001 13% financial reporting requirements of health plans and risk bearing entities A streamlined solution for ongoing care management and care optimization targeted Comprehensive Care towards special needs populations and special needs plans, especially those serving dual- 2013 2010 11% Management (CM) eligible beneficiaries Management Services Population and provider-based interventions to address utilization and monitor unit cost of 2003 2003 7% Organization (MSO) services ILS 4.6M 95K 67K 17K 4.8M Membership Nutrition Eligible Lives LTC Members CM Members MSO Members Total Member Lives Members $0.83 - $15.00 1 $7.50 - $35.00 2 PMPM Range $30.00 – $200.00 $16.50 - $24.00 5
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